Money Saving Expert Martin Lewis has issued a warning to anybody in the UK with a savings account. He says if people don’t act now, they could lose a significant amount of money.
The finance expert has taken a break from helping people with advice on rising fuel costs and turned his attention to savings accounts.
Writing in his latest moneysaving.com newsletter, the founder said it is estimated UK households put a staggering £180billion extra aside in savings during the pandemic. This was due to lower costs as more people were able to work from home, says Chronicle Live.
However, rock-bottom interest rates meant barely any rewards. But now, top savings rates have jumped to their highest levels since July 2019l, Mr Lewis adds. He went on to say that if your savings rates are less than 1.5%, you are being underpaid and “don’t stand for it.”
He said: “The minimum savings should pay is 1.5% – as that’s what you can get in the top easy-access account. If you’ve not switched savings account in the last couple of years, you’re likely earning just 0.1% or less.
“Even if you opened a decent account a few months ago, as rates have increased, you’re still likely earning little more than half of what today’s top accounts pay. Though of course you know that, as you’ve already checked… sorry for going on about it.”
Mr Lewis is encouraging people to check if they can get a better deal on interest rates elsewhere. In his latest newsletter he has put together a list of options offering 1.2%, 1.5% and 2.3% if you can afford to put away cash for a fixed term.
He has also put together top tips for a first-time buyer or a saver under 16. The full details can be found here.